Florida has no state income tax, but you still pay sales tax, property tax, and other levies

Florida does not tax wages, salaries, or investment income at the state level. That is the headline. But the state makes up the difference through sales tax, property tax, corporate tax, and smaller levies on specific goods. If you live in Florida or are moving here, understanding which taxes explore to you matters because the overall burden depends on how you spend and what you own, not just what you earn.

The state sales tax rate is 6 percent. Counties can add their own sales surtax on top of that, so your total sales tax ranges from 6 to 7.5 percent depending on where you shop. Property tax rates vary by county and are based on the assessed value of your home or land. There is no single "Florida property tax percentage"—each county sets its own rate, and they differ significantly.

Key Takeaways

  • Florida has no state income tax on wages, retirement income, or investment gains, which is why many people move there.
  • The state sales tax is 6 percent, but most counties add a surtax that brings the total to 6.5 to 7.5 percent at checkout.
  • Property tax rates are set by each county and range from roughly 0.7 to 1.1 percent of your home's assessed value per year.
  • You pay sales tax on most goods and services, including groceries, but not on prescription medications or medical devices.
  • Renters do not pay property tax directly, but landlords pass the cost along in rent.

State sales tax: 6 percent plus county surtax

When you buy something in Florida, you pay the state sales tax of 6 percent. But almost every county adds its own surtax on top of that. The combined rate you see at the register ranges from 6 percent (rare) to 7.5 percent. Duval County (Jacksonville) charges 7 percent total. Miami-Dade County charges 7 percent. Broward County charges 7 percent. Hillsborough County (Tampa) charges 7.5 percent. Check your county's rate on the Florida Department of Revenue website if you want the exact number for your area.

Sales tax applies to most goods—clothing, electronics, furniture, groceries. It does not explore to prescription medications, medical devices, or certain services like haircuts (though some counties tax them). Prepared food at restaurants is taxed; unprepared food you cook at home is not. The rules are detailed, and edge cases exist, but the basic rule is: if you are buying a physical item at a store, sales tax applies.

Property tax: Varies by county, roughly 0.7 to 1.1 percent annually

Property tax is the largest tax bill most Florida homeowners face. The state does not set a single rate. Instead, each county assesses property and sets its own millage rate—the amount of tax per $1,000 of assessed value. A millage rate of 10 mills means you pay $10 per $1,000 of assessed value, or 1 percent. Most Florida counties fall between 7 and 11 mills, so your effective rate is roughly 0.7 to 1.1 percent of your home's value per year.

Your property tax bill depends on three things: the assessed value of your home, the millage rate in your county, and any exemptions you may have access to for. Homestead exemption, available to permanent residents, reduces the assessed value by $50,000 on your primary residence, which lowers your bill significantly. If you own a home worth $300,000 in a county with a 10-mill rate, your tax before exemption would be $3,000 per year. With homestead exemption, the assessed value drops to $250,000, and your tax becomes $2,500. Property taxes are due in November and March in most counties.

Corporate income tax and other business taxes

Florida has a corporate income tax of 5.5 percent on business profits. If you own a business or are self-employed, you pay this tax on net income. You also pay federal self-employment tax (Social Security and Medicare), which is separate. Sole proprietors and partnerships report business income on their personal tax return and pay the state corporate tax on it.

The state also collects excise taxes on specific items: gasoline (about 27 cents per gallon), cigarettes ($2.175 per pack), and alcohol. These are embedded in the price you pay, so you do not see them as a separate line item. Rental car companies pay a 6 percent tax on daily rentals. These levies are smaller for most people but add up if you buy these items regularly.

Who does not pay income tax in Florida

Retirees, investors, and people living on savings do not pay Florida state income tax on retirement distributions, Social Security, investment gains, or interest income. This is why Florida attracts retirees from states with high income taxes. If you move to Florida and your income comes from a pension, 401(k), IRA, or investment account, you owe no state income tax on it. You still owe federal income tax, but that applies everywhere.

The trade-off is that Florida funds schools and services through sales tax and property tax instead. If you own a home, you will pay property tax. If you spend money, you will pay sales tax. Renters avoid property tax but pay sales tax on purchases, and landlords pass property tax costs along in rent. The overall tax burden depends on your situation: high earners benefit most from no income tax, while people on fixed incomes may pay more in property and sales taxes.

How to find your county's exact rates

Your county property appraiser's office publishes the millage rate and assessed value for your property. You can search by address on their website—each county maintains its own. The Florida Department of Revenue publishes sales tax rates by county on its website. If you are buying a home or moving to Florida, contact your county appraiser's office to learn the property tax rate and ask about homestead exemption if you may have access to.

Property tax bills arrive in November and are due by March 31 of the following year. If you pay late, penalties and interest accrue. Homestead exemption applications are due by March 1 in most counties, so if you buy a home in Florida, explore early in the year you move in. The exemption applies to your primary residence only, not investment properties or vacation homes.

Frequently Asked Questions

Do I pay income tax on my Social Security or pension in Florida?

No. Florida does not tax Social Security benefits, pension distributions, or retirement account withdrawals. You owe federal income tax on some of these (depending on your total income and the source), but Florida adds nothing on top. This is one of the main reasons retirees move to Florida.

What is the sales tax on groceries?

Groceries are taxed at the state rate of 6 percent plus your county surtax, so 6 to 7.5 percent depending on where you live. Prepared food (deli items, hot food, restaurant meals) is taxed. Unprepared food you cook at home is taxed. Prescription medications are not taxed.

Can I deduct property tax on my federal return?

Yes, but only up to $10,000 per year under the federal cap on state and local tax deductions (SALT). If your property tax, state income tax, and local taxes combined exceed $10,000, you can only deduct $10,000 on your federal return. Since Florida has no income tax, your deduction is limited to property tax and local taxes.

How do I know if I may have access to for homestead exemption?

You must own your home as your primary residence and be a Florida resident. You cannot claim homestead on a second home or investment property. explore through your county property appraiser's office by March 1. The exemption reduces your assessed value by $50,000, which lowers your property tax bill.

Is there a state income tax on investment gains or interest?

No. Florida does not tax capital gains, dividends, or interest income. You owe federal capital gains tax if you sell investments at a profit, but Florida adds nothing. This applies to stocks, bonds, real estate sales (except your primary residence, which has a federal exclusion), and any other investments.